$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
Zillow mortgage rate bait scam
Deceptive ads or emails promise unrealistically low mortgage rates through Zillow, collecting personal and financial information from hopeful borrowers.
“impersonation scam”
↑ 604%Key indicators
Usually targetsHomebuyers
Often hitsReal estate professionals and homebuyers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $12K
Recovery rate~15%
Annual reports330,000
Scam breakdown
1
Scammers run social media or search ads promoting mortgage rates well below market through what appears to be Zillow.
2
Clicking the ad leads to a convincing form that collects Social Security numbers, income details, and bank information.
3
The harvested data is sold to identity thieves or used to open fraudulent accounts.
What to do first
Compare mortgage rates on trusted sites like zillow.com, bankrate.com, or your own bank.
Related terms
fake Zillow rate adZillow low rate phishingmortgage rate scam ZillowBrand impersonation scamsZillowSurgingHomebuyersRefinancersAdultsReal estate professionals and homebuyersOnline shoppersUnited Statesfake Zillow rate adZillow low rate phishing
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Mark, 35, a homebuyers, encountered what appeared to be a legitimate brand impersonation scams situation while using Zillow. Scammers run social media or search ads promoting mortgage rates well below market through what appears to be Zillow.
Step 2
What happened next was calculated: Clicking the ad leads to a convincing form that collects Social Security numbers, income details, and bank information.
Step 3
The pressure escalated quickly: The harvested data is sold to identity thieves or used to open fraudulent accounts.
The outcome
Mark realized something was wrong when mortgage rate advertised is significantly below current market rates. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Compare mortgage rates on trusted sites like zillow.com, bankrate.com, or your own bank. Mark's experience shows why mortgage rate advertised is significantly below current market rates and ad or email asks for sensitive financial details to lock in the rate are the clearest early warning signs.
How to identify it
- Mortgage rate advertised is significantly below current market rates
- Ad or email asks for sensitive financial details to lock in the rate
- The landing page URL does not match zillow.com
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Compare mortgage rates on trusted sites like zillow.com, bankrate.com, or your own bank.
- ✓If a rate seems too good to be true, it almost certainly is.
- ✓Report deceptive ads to the platform where you saw them and to the FTC.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The CFPB has warned consumers about bait-and-switch mortgage advertising that uses artificially low rates to collect sensitive personal information.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Compare mortgage rates on trusted sites like zillow.com, bankrate.com, or your own bank.
- ✓If a rate seems too good to be true, it almost certainly is.
- ✓Report deceptive ads to the platform where you saw them and to the FTC.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The CFPB has warned consumers about bait-and-switch mortgage advertising that uses artificially low rates to collect sensitive personal information.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Homebuyers, Refinancers, Adults
Geographic concentration
United States
Primary channel
Zillow — Brand impersonation scams
Why this group is vulnerable
Homebuyers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The CFPB has warned consumers about bait-and-switch mortgage advertising that uses artificially low rates to collect sensitive personal information.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about zillow mortgage rate bait scam
How does the zillow mortgage rate bait scam work?+
Scammers run social media or search ads promoting mortgage rates well below market through what appears to be Zillow. Clicking the ad leads to a convincing form that collects Social Security numbers, income details, and bank information. The harvested data is sold to identity thieves or used to open fraudulent accounts.
What are the warning signs of zillow mortgage rate bait scam?+
Mortgage rate advertised is significantly below current market rates Ad or email asks for sensitive financial details to lock in the rate The landing page URL does not match zillow.com
What should I do if I encounter zillow mortgage rate bait scam?+
Compare mortgage rates on trusted sites like zillow.com, bankrate.com, or your own bank. If a rate seems too good to be true, it almost certainly is. Report deceptive ads to the platform where you saw them and to the FTC.
Who is most at risk for zillow mortgage rate bait scam?+
This scam primarily targets Homebuyers, Refinancers, Adults. It is most commonly reported in United States and typically appears on Zillow.
Is zillow mortgage rate bait scam getting worse?+
Zillow mortgage rate bait scam is currently surging — reports are increasing rapidly. It has been reported across US. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.